It seems that Burger King is not just sizzling with its beef patties but is also seeing significant growth, which is impacting McDonald’s.
The fast-food chain, part of Restaurant Brands International, announced a remarkable 5.8% increase in comparable sales at U.S. locations—this is the strongest growth in nearly two years. Clearly, the competition for the fast-food crown is heating up.
The burger rivalry intensified earlier this year when a promotional video featuring McDonald’s CEO Chris Kempczinski attempting to eat their new Big Arch burger went viral. He took quite a while to take a bite, and when he finally did, the mouthful seemed surprisingly small, raising some eyebrows.
Burger King President Tom Curtis seized this moment to spotlight the improved Whopper, complete with creamier mayonnaise and a new multi-layered burger box, the first update in a decade. He even shared a TikTok of himself relishing the burger.
The Miami-based chain is also sprucing up its restaurants to showcase a “clean image.”
During a recent earnings call, Burger King executives highlighted the positive impact of these changes.
“One thing that boosted our confidence was our best sales during the SpongeBob SquarePants promotion last quarter,” CEO Joshua Kobza noted, hinting at customer enthusiasm for such campaigns.
Restaurant analyst Mark Kalinowski remarked that the company’s turnaround strategy took off years ago when former Domino’s Pizza CEO Patrick Doyle became executive chairman.
“Burger King has become cleaner, and operations have improved, so we’re in a better position to serve Whoppers hot and fresh,” Kalinowski noted, suggesting that these renovations have been beneficial for the brand.
The revamped stores are now 60% smaller and include natural wood finishes, open ceilings, multiple drive-thrus, outdoor food lockers for pickups, and walk-up windows.
Burger King has started pushing this new image.
“While we are not expecting perfection just yet, we are optimistic about enhancing the guest experience,” Kobza commented about the restaurant redesign.
McDonald’s, the largest fast-food company globally, is set to report its latest financial figures soon, but Kalinowski anticipates they won’t match Burger King’s impressive growth.
Meanwhile, Restaurant Brands International, which also owns Tim Hortons, Firehouse Subs, and Popeyes, reported a decline of 6.5% in comparable sales for the quarter ending March 31. Tim Hortons did see a modest rise of 1.6%, which makes up a significant part of the company’s profits.
By late morning, the fast-food chain’s stock had dropped roughly 5%.
The RBI also cautioned that consumer spending in Canada, where Tim Hortons holds a strong market position, is currently “weak.”
